BILL NUMBER: AB 1413 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 25, 2007
INTRODUCED BY Assembly Members Portantino and Brownley
( Principal coauthor: Senator
Romero )
( Coauthors: Assembly Members
Berg, DeVore, Huffman, Leno,
Levine, Lieber, and Ruskin
)
( Coauthor: Senator Padilla
)
FEBRUARY 23, 2007
An act to amend Sections 66600, 66602, and 66903 of, and to add
Sections 66602.8 and 89504.7 to, the Education Code, relating to
public postsecondary education.
LEGISLATIVE COUNSEL'S DIGEST
AB 1413, as amended, Portantino. Public postsecondary education:
California State University: trustees.
(1) Existing law establishes the California State University,
under the administration of the Trustees of the California State
University, as one of the segments of public postsecondary education
in this state.
This bill would express findings and declarations of the
Legislature, as well as the intent of the Legislature, relating to
executive compensation of top officials of the California State
University and the ethical standards of the trustees.
(2) Under existing law, the trustees are composed of a total of 25
members, which include 5 specified ex officio members, 16 members
appointed by the Governor, subject to confirmation by 2/3 of the
membership of the Senate, for 8-year terms, and 2 California State
University students and 2 California State University faculty members
appointed by the Governor for 2-year terms.
This bill would authorize any ex officio trustee to designate a
person to attend a meeting or meetings of the board in his or her
absence and to act on his or her behalf at that meeting or those
meetings. The bill would increase the total membership of the
trustees to 27 by adding an appointee of the Speaker of the Assembly
and an appointee of the Senate Committee on Rules, both of whom would
serve for 2-year terms.
(3) Existing law authorizes the trustees to select a chief
executive officer for the university, known as the Chancellor of the
California State University, to employ other officers and employees,
and to delegate powers and responsibilities to these individuals.
Existing law authorizes the university to operate 25 institutions of
higher education at designated locations throughout the state.
This bill would prohibit the trustees, on and after January 1,
2008, from approving a contract for the hiring of an executive
officer, as defined, unless and until that contract and its terms are
adopted, by resolution, in a duly noticed meeting of the board.
The bill would require that, to the extent that the trustees
provide executive officer compensation in the form of transition pay
at the time an executive officer, as defined, ceases to perform his
or her regular duties, that transition pay would not exceed the
compensation, as defined, being received by that executive officer in
the last year of regular duties, and would only be paid for actual
duties performed. The bill would provide that, to the extent the
trustees provide executive compensation in the form of trustee
professorships at the time an executive officer, as defined, ceases
to perform his or her regular duties, no compensation, as defined,
would be paid unless it is paid in consideration for actual teaching
and does not exceed the amount a full professor of the California
State University would be paid for a similar teaching assignment.
(4) Existing law establishes the 17-member California
Postsecondary Education Commission (CPEC) for, among other purposes,
the collection of data pertinent to the planning and coordination of
the higher education system of the state.
This bill would require CPEC to report annually to the Governor
regarding specified expenditures related to instruction, student
services, and administration within the University of California, the
California State University, and the California Community Colleges.
The bill would also require CPEC to provide to the Legislature and
the Governor on or before January 1, 2009, and annually thereafter a
comprehensive review of compensation policies for faculty,
administrators, and executives within California higher education in
order to achieve transparency and accountability in the compensation
process.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (a) The Legislature finds and declares that reports
regarding executive compensation for the top officials of the
California State University system reveal a need for improved
communication between the Trustees of the California State University
and the Legislature and the need for immediate reforms related to
excess compensation.
(b) Therefore, it is the intent of the Legislature to reform the
composition of the Trustees of the California State University to
allow for improved communication with the Legislature, to make some
immediate reforms in executive compensation and to seek long-term
policy advice and data upon which to base further reforms if
warranted.
SEC. 2. Section 66600 of the Education Code is amended to read:
66600. The California State University shall be administered by a
board designated as the Trustees of the California State University,
which is hereby created. It is the intent of the Legislature that
the trustees shall be held to appropriate ethical standards relating
to any conflict of interest between the private interests of each
member and the business of the university. It is further the intent
of the Legislature to enact legislation if, after additional review
of the California State University, the Legislature finds the
enactment of a statute governing ethical standards of the trustees to
be necessary and appropriate.
SEC. 3. Section 66602 of the Education Code is amended to read:
66602. (a) (1) The board shall be composed of the following five
ex officio members: the Governor, the Lieutenant Governor, the
Superintendent of Public Instruction, the Speaker of the Assembly,
and the person named by the trustees to serve as the Chancellor of
the California State University; a representative of the alumni
associations of the state university, selected for a two-year term by
the alumni council, California State University, which
representative shall not be an employee of the California State
University during the two-year term; and 16 appointive members
appointed by the Governor and subject to confirmation by two-thirds
of the membership of the Senate.
(2) Any ex officio member of the board may designate a person to
attend a meeting or meetings of the board in his or her absence and
to act on his or her behalf at that meeting or those meetings.
(b) (1) Two students from the California State University, who
shall have at least a junior year standing at the institutions they
attend, and who remain in good standing as students during their
respective terms, shall also be appointed by the Governor for
two-year terms.
(2) In the selection of students as members of the board, the
Governor shall appoint the students from lists of names of at least
two, but not more than five, persons furnished by the governing board
of any statewide student organization that represents the students
of the California State University and the student body organizations
of the campuses of the California State University. Any appointment
to fill a vacancy of a student member shall be effective only for the
remainder of the term of the person's office that became vacated.
(3) The term of office of one student member of the board shall
commence on July 1 of an even-numbered year and expire on June 30 two
years thereafter. The term of office of the other student member of
the board shall commence on July 1 of an odd-numbered year and expire
on June 30 two years thereafter. Notwithstanding paragraph (1), a
student member who graduates from his or her college or university on
or after January 1 of the second year of his or her term of office
may serve the remainder of the term.
(4) During the first year of a student member's term, a student
member shall be a member of the board and may attend all meetings of
the board and its committees. At these meetings, a student member may
fully participate in discussion and debate, but may not vote. During
the second year of a student member's term, a student member may
exercise the same right to attend meetings of the board, and its
committees, and shall have the same right to vote as the members
appointed pursuant to subdivision (a).
(5) Notwithstanding paragraph (4), if a student member resigns
from office or a vacancy is otherwise created in that office during
the second year of a student member's term, the remaining student
member shall immediately assume the office created by the vacancy and
all of the participation privileges of the second-year student
member, including the right to vote, for the remainder of that term
of office.
(c) (1) A faculty member from the California State University, who
shall be tenured at the California State University campus at which
he or she teaches, shall also be appointed by the Governor for a
two-year term. In the selection of a faculty member as a member of
the board, the Governor shall appoint the faculty member from a list
of names of at least two persons furnished by the Academic Senate of
the California State University.
(2) The faculty member of the board appointed by the Governor
pursuant to this subdivision shall not participate on any
subcommittee of the board responsible for collective bargaining
negotiations.
(3) The term of office of the faculty member of the board shall
commence on July 1, and shall expire on June 30 two years thereafter.
(d) An appointee of the Speaker of the Assembly and an appointee
of the Senate Committee on Rules shall also be appointed for two-year
terms.
SEC. 4. Section 66602.8 is added to the Education Code, to read:
66602.8. (a) Notwithstanding any other provision of law, on and
after January 1, 2008, the board is not authorized to approve a
contract for the hiring of an executive officer unless and until that
contract and its terms are adopted, by resolution, in a duly noticed
meeting of the board.
(b) As used in this section, "executive officer" includes, but is
not necessarily limited to, the Chancellor of the California State
University, a vice chancellor or an executive vice chancellor of the
university, the general counsel of the university, or a president of
a campus.
SEC. 5. Section 66903 of the Education Code is amended to read:
66903. The commission has the following functions and
responsibilities in its capacity as the statewide postsecondary
education planning and coordinating agency and adviser to the
Legislature and the Governor:
(a) It shall require the governing boards of the segments of
public postsecondary education to develop and submit to the
commission institutional and systemwide long-range plans in a form
determined by the commission after consultation with the segments.
(b) It shall prepare a state plan for postsecondary education that
shall integrate the planning efforts of the public segments with
other pertinent plans. The commission shall seek to resolve conflicts
or inconsistencies among segmental plans in consultation with the
segments. If these consultations are unsuccessful, the commission
shall report the unresolved issues to the Legislature with
recommendations for resolution. In developing the plan, the
commission shall consider at least the following factors:
(1) The need for, and location of, new facilities.
(2) The range and kinds of programs appropriate to each
institution or system.
(3) The budgetary priorities of the institutions and systems of
postsecondary education.
(4) The impact of various types and levels of student charges on
students and on postsecondary education programs and institutions.
(5) The appropriate levels of state-funded student financial aid.
(6) The access and admission of students to postsecondary
education.
(7) The educational programs and resources of independent and
private postsecondary institutions.
(8) The provisions of this division differentiating the functions
of the public systems of higher education.
(c) It shall update the plan periodically, as appropriate.
(d) It shall participate in appropriate stages of the executive
and the legislative budget processes as requested by the executive
and the legislative branches, and shall advise the executive and the
legislative branches as to whether segmental programmatic budgetary
requests are compatible with the state plan. It is not intended that
the commission hold independent budget hearings.
(e) It shall advise the Legislature and the Governor regarding the
need for, and location of, new institutions and campuses of public
higher education.
(f) It shall review proposals by the public segments for new
programs, the priorities that guide them, and the degree of
coordination with nearby public, independent, and private
postsecondary educational institutions, and shall make
recommendations regarding those proposals to the Legislature and the
Governor.
(g) In consultation with the public segments, it shall establish a
schedule for segmental review of selected educational programs,
evaluate the program approval, review, and disestablishment processes
of the segments, and report its findings and recommendations to the
Legislature and the Governor.
(h) It shall serve as a stimulus to the segments and institutions
of postsecondary education by projecting and identifying societal and
educational needs and encouraging adaptability to change.
(i) It shall periodically collect or conduct, or both collect and
conduct, studies of projected manpower supply and demand, in
cooperation with appropriate state agencies, and disseminate the
results of those studies to institutions of postsecondary education
and to the public in order to improve the information base upon which
student choices are made.
(j) It shall periodically review and make recommendations
concerning the need for, and availability of, postsecondary programs
for adult and continuing education.
(k) It shall develop criteria for evaluating the effectiveness of
all aspects of postsecondary education.
() It shall maintain and update annually an inventory of all
off-campus programs and facilities for education, research, and
community services operated by public and independent institutions of
postsecondary education.
(m) (1) It shall act as a clearinghouse for postsecondary
education information and as a primary source of information for the
Legislature, the Governor, and other agencies. It shall develop and
maintain a comprehensive database that does all of the following:
(A) Ensures comparability of data from diverse sources.
(B) Supports longitudinal studies of individual students as they
progress through the state's postsecondary educational institutions,
based upon the commission's existing student data base through the
use of a unique student identifier.
(C) Is compatible with the California School Information System
and the student information systems developed and maintained by the
public segments of higher education, as appropriate.
(D) Provides Internet access to data, as appropriate, to the
sectors of higher education.
(E) Provides each of the educational segments access to the data
made available to the commission for the purposes of the database, in
order to support, most efficiently and effectively, statewide,
segmental, and individual campus educational research information
needs.
(2) The commission, in implementing paragraph (1), shall comply
with the federal Family Educational Rights and Privacy Act of 1974
(20 U.S.C. Sec. 1232g) relating to the disclosure of personally
identifiable information concerning students.
(3) The commission may not make available any personally
identifiable information received from a postsecondary educational
institution concerning students for any regulatory purpose unless the
institution has authorized the commission to provide that
information on behalf of the institution.
(4) The commission shall provide 30-day notification to the
chairpersons of the appropriate legislative policy and budget
committees of the Legislature, to the Director of Finance, and to the
Governor prior to making any significant changes to the student
information contained in the database.
(n) It shall establish criteria for state support of new and
existing programs, in consultation with the public segments, the
Department of Finance, and the Joint Legislative Budget Committee.
(o) It shall comply with the appropriate provisions of the federal
Education Amendments of 1972 (P.L. 92-318), as specified in Section
67000.
(p) It shall consider the relationship among academic education
and vocational education and job training programs, and shall
actively consult with representatives of public and private
education.
(q) It shall review all proposals for changes in eligibility pools
for admission to public institutions and segments of postsecondary
education and shall make recommendations to the Legislature, the
Governor, and institutions of postsecondary education. In carrying
out this subdivision, the commission periodically shall conduct a
study of the percentages of California public high school graduates
estimated to be eligible for admission to the University of
California and the California State University. The changes made to
this subdivision during the 2001-02 Regular Session of the
Legislature shall be implemented only during those fiscal years for
which funding is provided for the purposes of those provisions in the
annual Budget Act or in another measure.
(r) It shall report periodically to the Legislature and the
Governor regarding the financial conditions of independent
institutions, their enrollment and application figures, the number of
student spaces available, and the respective cost
costs of utilizing those spaces as compared to providing
additional public spaces. The reports shall include recommendations
concerning state policies and programs having a significant impact on
independent institutions.
(s) Upon request of the Legislature or the Governor, it shall
submit to the Legislature and the Governor a report on all matters so
requested that are compatible with its role as the statewide
postsecondary education planning and coordinating agency. Upon
request of individual Members of the Legislature or personnel in the
executive branch, the commission shall submit information or a report
on any matter to the extent that sufficient resources are available.
From time to time, it also may submit , to the
Legislature and the Governor , a report that contains
recommendations as to necessary or desirable changes, if any, in the
functions, policies, and programs of the several segments of public,
independent, and private postsecondary education.
(t) In consultation with the public segments, it shall consider
the development of facilities to be used by more than one segment of
public higher education, commonly called "joint-use facilities." It
shall recommend to the Legislature criteria and processes for
different segments to utilize bond funds for these intersegmental,
joint-use facilities.
(u) To report annually to the Legislature and the Governor
regarding expenditures related to instruction, student services, and
administration within the University of California, the California
State University, and the California Community Colleges:
(1) On or before March 15, 2008, the commission shall appoint a
committee to advise on the reporting responsibilities in this
section, composed, at a minimum, of representatives of each
system to include system, including at least one
person designated as a manager or executive, one faculty bargaining
representative, one additional faculty member and one student, as
well as a representative from the Legislative Analyst
Analyst's Office and the Department of Finance,
and other members as deemed appropriate by the commission, with terms
set by the commission.
(2) On or before January 1, 2009, the commission shall issue an
initial report to the Legislature and the Governor that shall do both
of the following:
(A) Provide definitions and details of categories of expenditures
in each system related to all of the following:
(i) Instruction and instructionally related expenditures.
(ii) Student support service services
expenditures.
(iii) Administration, other than instruction and student support
services.
(iv) All other expenditures.
(B) Report the total and itemized expenditures of each system in
each of these newly defined expenditure categories for the 2006-07
and 2007-08 academic years.
(3) On or before January 1, 2010, and on or before January 10 in
each subsequent year, the commission shall provide reports to the
Legislature and the Governor that shall accomplish both of the
following:
(A) Report the total and itemized expenditures of each system in
each of the defined expenditure categories for the immediately
preceding academic year, both in absolute and relative terms.
(B) Report on any changes in reporting of expenditures that affect
these categories and make adjustments in such a manner that the
Legislature and the Governor may compare, from year to
year, spending on comparable items.
(v) To provide to the Legislature and the Governor on or before
January 1, 2009, and annually thereafter, a comprehensive review of
compensation policies for faculty, administrators, and executives
within California higher education in order to achieve transparency
and accountability in the compensation process. This report shall
accomplish all of the following:
(1) Take into account and comment upon the competitive marketplace
for recruitment and retention of outstanding faculty,
administrators, and executives.
(2) Review all compensation and benefits provided, to the extent
that these data are available , and comment on the nature
of compensation and benefits for which data cannot be obtained and
the reasons for which these data are not available.
(3) Provide data on compensation in comparison to appropriate
institutions of like size, mission, and control.
(4) Undertake this review with the consultation of an advisory
committee to be appointed by March 15, 2008, that shall include
representatives of each system to include at least one person
designated as a manager or executive, one faculty bargaining
representative, one additional faculty member , and one
student, as well as a representative from the Legislative Analyst's
Office and the Department of Finance, and other members as deemed
appropriate by the commission, with terms set by the commission.
(w) It may undertake other functions and responsibilities that are
compatible with its role as the statewide postsecondary education
planning and coordinating agency.
SEC. 6. Section 89504.7 is added to the Education Code, to read:
89504.7. (a) To the extent that the trustees provide executive
officer compensation in the form of transition pay at the time an
executive officer ceases to perform his or her regular duties, that
transition pay shall not exceed the compensation being received by
that executive in the last year of regular duties, and shall only be
paid for actual duties performed.
(b) To the extent that the trustees provide executive officer
compensation in the form of trustee professorships at the time an
executive officer ceases to perform his or her regular duties,
compensation shall not be paid unless it is paid in consideration for
actual teaching. This compensation shall not exceed the amount a
full professor of the California State University would be paid for a
similar teaching assignment.
(c) As used in this section:
(1) "Compensation" includes, but is not necessarily limited to,
salary, pension benefits, and automobile and housing allowances.
(2) "Executive officer" includes, but is not necessarily limited
to, the Chancellor of the California State University, a vice
chancellor or an executive vice chancellor of the university, the
general counsel of the university, or a president of a campus.